How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TexLaw Your Own Question
TexLaw, Attorney
Category: Business Law
Satisfied Customers: 4430
Experience:  Internationational Commercial Attorney
Type Your Business Law Question Here...
TexLaw is online now
A new question is answered every 9 seconds

Thanks for your response. I understand the tax incentives of

This answer was rated:

Thanks for your response. I understand the tax incentives of LLC and S Corps. I would like to focus on Asset protection in the short term. Currently all my equipment in is my name and I lease it to my carrier and drive my truck with the carrier taking a % under the agreement and use of their Authority. I will transition to get my own Authority in the Fall and separate on my own next Jan. With that in mind should I start up an LLC and lease my equipment to that LLC who in turn is leasing the equipment to my carrier? In addition, being that I am currently the driver, should consider putting my personal assets in a trust? How difficult is it to establish a trust? Are the trust in Alaska the best option? thanks Danny
You need to separate your business assets from your personal assets. So, for instance, the truck would need to be the actual property of the S corporation that leases to the LLC, rather than you leasing it to the corporation. There will need to be a leasing contract between the S Corp and the LLC which requires that the LLC has all responsibility for maintaining the truck. That way if there is a maintenance issue which causes a wreck, the LLC gets sued for it, but the asset of the actual truck is protected because it belongs to the S Corp. If you get sued personally for causing a wreck, then truck is protected because it does not belong to you anymore.

In regard to your real estate in Alaska, you should give the property to your Alaskan trust and name yourself as the beneficiary. What that does is so that if you are sued for personal liability in an accident, your trust property will be protected.
TexLaw and 7 other Business Law Specialists are ready to help you